Information Technology vs. Information Systems

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Running head: Information Technology vs. Information Systems Information Technology for Managers
John Alexander
Keys to Information Technology

1. In your own words, define the terms "information technology" (IT) and “information systems” (IS) and explain their components and infrastructure. Why is it important for a manager to be involved in IT and what are the critical responsibilities for the manager?

2. Case Study (discuss the case and answer questions at end of case): The Progressive Group of Insurance Companies - Managers Leverage Ongoing IT Investments to Achieve Competitive Advantages (p. 23 of text)

Information Technology vs. Information Systems
While both terms can be interchangeable, it is important to differentiate between the two if a meaningful dialogue is to take place between businesses and IS staff and ultimately successful IS/IT strategies are to be developed. It should be clear, that information systems existed in organizations long before the advent of information technology and, even today, there are still many information systems present in organizations with technology nowhere in sight. IT refers specifically to technology, essentially hardware, software and telecommunications networks. IT facilitates the acquisition, processing, storing, delivery and sharing of information and other digital content. Some of the basic components could include mainframe computers, laptops, servers and related equipment. This equipment could be the technology infrastructure of the company.

Information systems are an integral part of all business activities and careers. These systems enable a firm to meet the fundamental needs of the business. Information systems allow companies to increase revenue by reducing cost, improving decision making, enhancing customer relationships and helps to speedup product time to the customer. Depending on the type of business, these systems could have many different parts. Some components could...
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